2026-05716RuleWallet

Virtual Power Grids Approved: FERC Ensures Safe Tech!

Published Date: 3/24/2026

Rule

Summary

The Federal Energy Regulatory Commission just approved new rules to keep our electric grid safe while letting companies use cool new virtualization tech. These changes affect power companies and take effect on May 26, 2026, helping them protect critical systems better without breaking the bank. Plus, there’s a new rule to make sure exceptions are clear and fair, so everyone plays by the same safety rules.

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

FERC Approves Virtualization Standards

The Commission approved 11 modified Critical Infrastructure Protection (CIP) Reliability Standards to allow responsible entities to adopt virtualization and other new technologies in a secure manner. The rule is effective May 26, 2026, and the new standards are intended to improve the reliability and cybersecurity of the Bulk-Power System without obligating entities to adopt virtualization.

New 'Per System Capability' Exception

The rule replaces the prior technical feasibility exception language with a new 'per system capability' approach that lets a responsible entity determine an alternative mitigation when a specific system cannot perform a required action. The Commission directed NERC to develop a clear set of criteria and documentation requirements so entities and auditors know when and how the per system capability exception may be invoked.

Mandatory Exception Reporting and Annual Data Report

When a responsible entity invokes the per system capability exception, NERC must implement mandatory reporting to the ERO Enterprise (Regional Entity, NERC, or both) including the applicable CIP Requirement, explanation of the need, and description of alternative mitigation. NERC must also file an anonymized, aggregated annual report to the Commission (first due 12 months after compliance with the 11 standards becomes mandatory) showing counts, categorizations by Requirement, asset types, and mitigation types.

Early Adoption Option for Entities

Responsible entities may comply with the approved Reliability Standards before their mandatory effective date by notifying their Regional Entity; NERC's implementation plan allows early adoption at 6, 12, or 18 months after the effective date of this final rule. NERC must ensure the per system capability program criteria are available in time for entities that choose to adopt early.

Your PRIA Score

Score Hidden

Personalized for You

How does this regulation affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Key Dates

Published Date
Rule Effective
3/24/2026
5/26/2026

Department and Agencies

Department
Independent Agency
Agency
Energy Department
Federal Energy Regulatory Commission
Source: View HTML

Related Federal Register Documents

Previous / Next Documents

Back to Federal Register

Take It Personal

Get Your Personalized Policy View

Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.

Already have an account? Sign in